With a struggling economy, every company that focuses on possible ways to increase revenue and reduce costs. Executives are under pressure to make decisions that will greatly affect the welfare of their company. Historically, executive decisions are strictly led by financials. Many board rooms always have a seat at the table for the Chief Executive Officer, Chief Financial Officer and Chief Operating Officer. More recently, however, new seats up on the table for the Chief Information Officers.One main development region for the CIO is Information Management, in particular, Business Intelligence (BI), also known as Decision Support. BI is a field that focuses on the data information by applying knowledge, technology, and assessment. BI technology can be used for historical analysis, this study and predictive analysis.
Data warehousing includes business intelligence, which allows for large amounts of data, often obtained from a separate system of origin, located in one location, available for querying.One from the source system that offers a large amount of rich data is the financial system. The financial system is often used for every financial transaction and total data then feeds into the system used to manage the General Ledger. Financial transactions GL data feed, data feed system GL is often spent. This system produces financial statements of the balance sheet and financial data revenues statement.The very useful for many types of studies that can benefit not only the supply, but many departments in an organization. The top of the summary financial data will be Balance Sheet, Income Statement, and Statement of Cash Flows. By examining the reports, a good understanding of the current climate in an organization can be obtained. Report high levels that are not good, however, in showing more specific problems and potential solutions.In ago, after executives will study reports a high level, It has a more detailed study was collected manually by employees and then have a summary presented to them. With the new technology, executives do not have to hear all the news secondhand.
This innovative reporting allows executives to get the overall organizational climate with summary statistics and graphical representations, and also allows them to explore themselves with technology that allows the cube with the ability to drill right into the detailed data. Technological advances in reporting capabilities allow for faster analysis, faster response, increased internal transparency and overall decisions faster and more accurately a large piece of business intelligence making.Another emphasis on process improvement with a focus on automation. Manual data manipulation always create an increased risk to the integrity, if done wrong intentionally or unintentionally, when adjustments are made manually, mistakes are inevitable. He did away with many, if not all manipulation of point manual data entry at the point of reporting allows for the purest form of information given decision makers.While many financial priorities and business intelligence seemed aligned, the repair process can be the biggest point of contention. The premise automate tasks that have the same principles can be applied to the process, these rules may be less likely to be able to program the system to perform initial data and create the final product. While the programming code can be incredibly complex and detailed, requiring strict compliance with the rules.
Accounting principles, as established by the governing board of the Financial Accounting Standards Board (FASB), not strict rules, they are not flexible guidelines. This slight disagreement with the principles for BI and Accounting can create some friction, however, if Bi and Accounting team may have a clear and consistent communication allows to search for and continue to represent a middle ground between rigidity and flexibility of Bi both internally and externally Accounting . Since Bi is still young, many organizations only know how to embrace new concepts and technologies. Historically, finance has become one of the main sources for analysis and reporting within an organization, so the introduction of Bi is a big change and it is one that is seen by some as a threat. It is important to consider, however, contain Bi and analyze the data for the entire company, with a focus not only financially, but also with a focus on operations, quality, etc..
BI architects and analysts, therefore, must have many skills beyond just the financial sector and typically do not contain fully committed to certification such as CPA or CMA. BI architects and analysts rely on subject matter experts for initial development and a lot of them constantly. The purpose of the Bi is to make it easier for other employees and managers to perform tasks with their day-to-day tasks manually remove and allow them to put more attention to the concept that they need a more focused set of skills. The new relationship must be established between the professional accounting and business intelligence professionals within the organization is one that can take time to perfect, however, need to work on because the consequences can be very useful for all parties involved.